Taiwan Stock Market Plunges Nearly 1,900 Points! Analyst Compares Crash to Department Store Sale, Announces $100 Million Investment in 0050 if Index Falls Below This Level

Major Asian stock markets are experiencing sharp declines, and Taiwan's equity market is no exception, facing intense selling pressure today (29). Within less than two hours of opening, the index plunged 1,859.80 points—the eighth-largest single-day drop in Taiwan's stock market history. The TAIEX broke through the 40,000-point threshold, hitting a low of 39,743.56 points. Over 1,593 listed companies saw their share prices fall simultaneously. Since reaching a record high of 48,218.87 points on June 23, the market has corrected by approximately 8,300 points, leaving many investors trapped in losing positions.

What's Behind the Sharp Decline? Analyst Explains Global Headwinds

Regarding this deep correction, Moore Securities analyst Guo Zherong analyzed on his personal YouTube channel yesterday (28) that the market currently lacks a clear support level—even the quarterly moving average, often seen as a 'lifeline,' has been breached. The correction stems from a confluence of international negative factors, including South Korea's stock market plunging over 10% and triggering circuit breakers again, and market rumors about China's independently developed DUV lithography equipment. These rumors sparked investor concerns that ASML, the leader in semiconductor equipment, might face challenges to its market dominance, dragging down global tech stocks.

However, Guo believes the market's reaction is clearly overdone. He explained that even if Chinese equipment achieves limited production, it is entirely different from entering large-scale, stable mass production. This pullback is more of a 'profit-taking correction after excessive gains' rather than a sign of fundamental deterioration in the industry.

Is Breaking Below 40,000 Points a Disaster or an Opportunity? Guo Calls for $100 Million Investment to Buy the Dip

Guo stated that despite the index falling below 42,000 points, Taiwan stocks have still gained about 45% year-to-date. A moderate pullback is actually a healthy consolidation of investor positioning. He likened the market crash to a department store anniversary sale, saying, 'Stocks on discount are actually a great time to enter the market.' He urged investors not to panic over short-term volatility but to seize the opportunity to reposition after price corrections.

Guo even declared that if the Taiwan stock market falls further below 40,000 points, he will invest 100 million New Taiwan dollars to buy Yuanta Taiwan 50 (0050), stating, 'I’ll enter the market even if I have to borrow money.' However, he simultaneously warned retail investors that personal finance should rely on one’s own funds and advised against excessive leverage or borrowing to chase investments.

Where Is the Taiwan Stock Market Headed? Long-Term AI Optimism Points to 100,000 Points

Looking ahead, Guo remains optimistic about the long-term growth momentum of the artificial intelligence (AI) industry over the next few years. He forecasts that the AI transformation will continue to advance, potentially driving the Taiwan stock market to challenge the 100,000-point mark within the next four to five years, and predicts the index may still have a chance to break through 50,000 points this year.

Given Guo’s past track record of heavily investing in 0050 at relatively low market levels, his latest call to invest 100 million has sparked heated discussions among netizens on PTT’s stock forum. While supporters highly praise his past accuracy in bottom-fishing ETFs, others remain cautious or skeptical about his bold long-term prediction of 100,000 points.